Buy Share India Securities; target of Rs 677: Khambatta Securities

Khambatta Securities is bullish on Share India Securities has recommended buy rating on the stock with a target price of Rs 677 in its research report dated August 03, 2021.

Broker Research

August 04, 2021 / 14:11 IST

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

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Khambatta Securities' research report on Share India Securities

Share India Securities (SIS) doubled the topline and reported still stronger profit growth in 1Q FY22 on a y-o-y basis. The healthy margin expansion is primarily attributable to operating leverage arising out of a lower increase in employee benefit expense relative to the revenue growth. ROA and ROE continues to witness a rising trend based on FY numbers as the company registered 53% CAGR in consolidated PAT in the 5 years to FY21. Management has pursued a combination of organic and inorganice expansion to drive business growth as it looks to employ the same strategy to enter the retail segment of the market by leveraging its robust technology platform and strong service experience in the HNI segment.

Outlook

Basis expectations of robust growth and operating leverage-driven margin expansion, we revise our forecasts upward and reiterate a BUY rating with a price target of Rs 677 (at 12.0x FY23E EPS) and an upside of 23% from current levels.

For all recommendations report, click here